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Food imports soar 45% as local production falters

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Food and beverage imports increased to N677.3bn in the first half of 2025, a 44.48 per cent rise from N468.76bn in the same period of 2024, prompting renewed calls for stronger government support to enhance local industry capacity and reduce dependency on imports.

Data from the National Bureau of Statistics showed that while the value of primary food and beverage imports mainly for household consumption surged, the value of processed food and beverages consumed by households recorded a marginal 1.85 per cent decline, falling from N699.58bn in H1 2024 to N686.81bn in H1 2025.

Meanwhile, primary food and beverage imports mainly for industrial use grew in six months by 1.37 per cent from N969.22bn to N982.49bn, while processed imports for industrial use rose by 7.28 per cent from N984.16bn to N1.06tn in the same period.

This came as members of the Organised Private Sector who spoke to The PUNCH in separate phone interviews linked the surge in food imports to weak local production, insecurity, inconsistent agricultural policy, and consumer preference for imported products perceived to have better quality and availability.

Trust deficiency

The Chairman of the Lagos Chamber of Commerce and Industry, Agricultural and Allied Group, Tunde Banjoko, said the figures reflected a lack of trust in locally produced raw materials and food items.

“From this data, what one can simply infer is that people trust the quality and integrity of imported raw materials, foodstuff, and beverages for household consumption more than what is being produced locally,” he said.

Banjoko noted that factors such as price competitiveness, quality control, and availability played significant roles in shaping consumer preferences.

He added, “We are still battling with inadequate funding to do things properly the way they ought to be done. The quality of our seedlings, the use of chemicals, and our production processes are still affecting the overall output.”

The LCCI agric group chief added that the country’s poor storage systems and weak commodity boards had worsened the problem, leading to seasonal shortages of local produce.

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He advised the Federal Government to establish stronger funding mechanisms for agribusinesses and guarantee offtake systems through commodity boards to stabilise supply. “We need to get proper storage and make them available.

Commodity boards need a guarantee of offtake so that these products can be available, stored properly, and made available to the market when needed,” Banjoko stressed.

He maintained that the government must act to ensure businesses are scalable and interesting to local producers so that they can compete effectively. With the right policies, these numbers should begin to drop and ease pressure on foreign exchange,”

Insecurity crippling output

The President of the Association of Small Business Owners of Nigeria, Dr Femi Egbesola, explained that insecurity and low technological adoption in agriculture were among the main reasons Nigeria continued to rely on food imports.

Egbesola said, “Most of the farmers are no longer on the farms because of insecurity. Many farmlands have been deserted. That is where the primary products come from. It is when the farmers plant and harvest. That is when the manufacturers and other users can buy from them and use them as their inputs. This time, many of the farms are deserted.”

He noted that Nigeria’s agricultural productivity remained far below global standards due to the use of outdated tools and practices.

“For instance, what it takes to produce 10 tons of cassava in Nigeria requires about 30 acres of land, whereas in the Netherlands, the same 10 tons come from just three plots. That shows how far behind we are in technology use,” he said.

He urged the government to integrate technology into farming, upgrade peasant farmers, and invest in agricultural mechanisation to close the production gap.

“To Small and Medium-sized Enterprises, this wide gap presents investment opportunities. It’s a sign that there is strong business potential in local production if we can look inward and bridge these deficits,” Egbesola said.

The Director of the Centre for the Promotion of Private Enterprise, Dr Muda Yusuf, attributed the rise in food and beverage imports partly to government import waivers and increased demand for staple foods such as wheat-based products.

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“The biggest driver of food imports is in the wheat value chain; bread, pastries, and noodles, which are staple foods in Nigeria,” Yusuf explained.

He said the Federal Government’s 180-day waiver to import maize and brown rice in 2024 had influenced the 2025 figures, as many of those imports entered the country early this year. “Another factor is that the data are in naira terms, and with currency depreciation, the import values appear higher even if the physical quantities are not significantly more,” he added.

Yusuf advised the government to focus on improving agricultural value chains, supporting wheat alternatives, and reducing policy inconsistencies that discourage local investors.

Purchasing power

Meanwhile, the Director-General of the Nigerian Association of Small and Medium Enterprises, Eke Ubiji, lamented rising economic hardship. He cautioned that the rising import figures did not suggest that Nigerians’ purchasing power had improved.

“I strongly doubt that these numbers mean consumers’ purchasing power has increased. Many people have reduced what they buy because of inflation,” Ubiji said.

The NASME chief noted that the growth in imports may reflect industrial demand rather than increased household consumption, as consumers have increasingly turned to smaller, cheaper product sizes.

He said, “Even people who were not used to eating instant noodles before are now eating them because that’s what their money can afford. The economy has forced consumers to adjust downward.”

Ubiji criticised government claims of improvement in living conditions, noting that essential food items remained unaffordable for many Nigerians.

Stakeholders agreed that reversing Nigeria’s growing reliance on food and beverage imports required coordinated policy action across the agricultural, manufacturing, and trade sectors.

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They urged the Federal Government to tackle insecurity, strengthen value addition in local production, incentivise agribusiness investment, and improve access to finance for farmers and processors.

Banjoko summed it up: “If we can make local production sustainable and competitive through funding, technology, and storage infrastructure, Nigeria can reduce its import dependence and ease pressure on foreign exchange.”

Fight for food security

The Federal Government has long battled to ensure food security in Nigeria. Official statistics have identified food inflation as a major aggravator of core inflation. Nigerians have found it increasingly difficult to access food over the past five years owing to import restrictions of the former President Muhammadu Buhari administration and insecurity.

The inflationary trend began to soften with the President Bola Tinubu administration’s national emergency on food security, which freed up import restrictions for 150 days on selected food items, including rice. Notably, local farmers decried the policy as reversing gains made in building the country’s self-sufficiency.

Whereas the Federal Government has lauded its efforts in executing the temporary import duty waiver for bringing down food prices, the rebased Consumer Price Index has also deemphasised the weight of food baskets in the inflation calculation.

Present food inflation figures are dropping, according to NBS data. As of September 2025, the food inflation rate was 16.87 per cent on a year-on-year basis. It was 20.9 percentage points lower compared to the rate recorded in September 2024 (37.77 per cent).

Stakeholders have warned of lingering risks to food supply and affordability. The PUNCH earlier reported that Nigeria’s agricultural import bill soared to N2.22tn in the first half of 2025, signifying more imported food to meet the growing needs of the local population.

Yet, farmers, rice millers, and stakeholders argued that the Federal Government’s policies are undermining local production and worsening food insecurity.

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Bank recapitalisation: Local investors provide 72% of N4.6tn

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The Central Bank of Nigeria (CBN) on Wednesday said domestic investors accounted for the bulk of funds raised under its banking sector recapitalisation programme, contributing 72.55 per cent of the N4.65tn total capital secured by lenders.

The apex bank disclosed this in a statement marking the conclusion of the exercise, which began in March 2024 and saw 33 banks meet the new minimum capital requirements.

The statement was jointly signed by the Director of Banking Supervision, Olubukola Akinwunmi, and the Acting Director of Corporate Communications, Hakama Sidi-Ali.

According to the CBN, Nigerian investors provided about N3.37tn of the total capital raised, underscoring strong domestic confidence in the banking sector, while foreign investors accounted for the remaining 27.45 per cent.

“Over the 24-month period, Nigerian banks raised a total of N4.65tn in new capital, strengthening the resilience of the financial system and enhancing its capacity to support the economy,” the statement said.

Commenting on the outcome, the CBN Governor, Olayemi Cardoso, said, “The recapitalisation programme has strengthened the capital base of Nigerian banks, reinforcing the resilience of the financial system and ensuring it is well-positioned to support economic growth and withstand domestic and external shocks.”

The bank confirmed that 33 lenders had met the revised capital thresholds, while a few others were still undergoing regulatory and judicial processes.

“The CBN confirms that 33 banks have met the revised minimum capital requirements established under the programme,” it stated.

“A limited number of institutions remain subject to ongoing regulatory and judicial processes, which are being addressed through established supervisory and legal frameworks.

“All banks remain fully operational, ensuring continued access to banking services for customers.”

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The regulator stressed that the recapitalisation exercise was completed without disrupting banking operations nationwide, noting that key prudential indicators, particularly capital adequacy ratios, had improved and remained above global Basel benchmarks.

Minimum capital adequacy ratios were pegged at 10 per cent for regional and national banks and 15 per cent for banks with international licences.

The CBN added that the exercise coincided with a gradual exit from regulatory forbearance, a move it said improved asset quality, strengthened balance sheet transparency, and enhanced overall system stability.

To sustain the gains, the apex bank said it had strengthened its risk-based supervision framework, including periodic stress tests and requirements for adequate capital buffers.

It added that supervisory and prudential guidelines would be reviewed regularly to improve governance, risk management, and resilience across the sector.

“The successful completion of the programme establishes a stronger and more resilient banking system, better positioned to support lending, mobilise savings, and withstand domestic and global shocks,” the statement added.

Meanwhile, data from the National Bureau of Statistics showed that foreign capital inflows into the banking sector rose by 93.25 per cent year-on-year to $13.53bn in 2025 from $7.00bn in 2024, reflecting strong investor interest during the recapitalisation drive.

However, the Centre for the Promotion of Private Enterprise has cautioned that despite the strengthened banking system, credit to small businesses remains weak, warning that the benefits of the reforms are yet to fully impact the real economy.

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Court freezes N448m assets in Keystone Bank debt recovery suit

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The Federal High Court in Lagos has ordered the freezing of funds and assets valued at N448,263,172.41 in a debt recovery suit instituted by Keystone Bank Limited against five defendants.

The order was made on March 26, 2026, by Justice Chukwujekwu Aneke following an ex parte application moved by Keystone Bank’s counsel Mofesomo Tayo-Oyetibo (SAN), against Relic Resources, Olufunmilayo Emmanuella Alabi, Uwadiale Donald Agenmonmen, The Magnificent Multi Services Limited, and Raedial Farms Limited.

In his ruling, Justice Aneke granted a Mareva injunction restraining the defendants, whether by themselves, their agents, privies, or assigns, from withdrawing, transferring, dissipating, or otherwise dealing with funds, shares, dividends, and other financial instruments standing to their credit in any bank or financial institution in Nigeria, up to the sum in dispute.

The court further directed all banks and financial institutions within the jurisdiction to forthwith preserve any funds belonging to the defendants upon being served with the order.

The said institutions were also ordered to depose to affidavits within seven days of service, disclosing the balances in all accounts maintained by the defendants, together with the relevant statements of account.

In addition, the court granted a preservative order restraining the defendants from disposing of, alienating, or otherwise encumbering any movable or immovable property, including any future or contingent interests, up to the value of the alleged indebtedness.

The court also granted leave for substituted service of the originating and other court processes on the second and third defendants by courier delivery to their last known addresses.

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The matter was adjourned to April 9, 2026, for mention.

According to the originating processes before the court, the suit arises from a N500 million overdraft facility granted by the claimant to the first defendant on March 28, 2023, for a tenure of 365 days at an interest rate of 32 per cent per annum.

The claimant averred that the facility, initially secured by a $200,000 cash collateral and subsequently by a mortgaged property located at Itunu City, Epe, Lagos, expired on March 27, 2024, leaving an outstanding indebtedness of N448,263,172.41 as at October 31, 2024.

In the affidavit in support of the application, the claimant alleged that the facility was diverted for personal use by the third defendant and channelled through the fourth and fifth defendant companies.

It further contended that the first defendant is no longer a going concern and has failed, refused, and neglected to liquidate the outstanding indebtedness despite several demands made between May and October 2025.

The claimant also expressed apprehension that the defendants may dissipate or conceal their assets, thereby rendering nugatory any judgment that may be obtained in the suit, and consequently urged the court to grant the reliefs sought in the interest of justice.

After considering the application and submissions of learned silk, Justice Aneke granted all the reliefs sought and adjourned the matter to April 9, 2026, for further proceedings.

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Sanwo-Olu unveils Lagos 2026 economic blueprint, vows inclusive growth

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The Lagos State Governor, Babajide Sanwo-Olu, on Tuesday unveiled the 2026 edition of the Lagos Economic Development Update, reaffirming his administration’s commitment to driving inclusive growth and ensuring that economic progress translates into tangible benefits for all residents of the state.

The unveiling of this year’s outlook, held in Ikeja, provides an in-depth analysis of the state’s economic trajectory, capturing global, national, and local developments shaping Lagos’ growth outlook.

Represented by his deputy, Obafemi Hamzat, the governor described the report as more than a policy document, noting that it serves as a strategic compass for guiding economic direction and strengthening decision-making.

He added that despite global economic headwinds — including post-pandemic recovery challenges, inflationary pressures, and exchange rate fluctuations — the state has remained resilient through deliberate policies, fiscal discipline, and sustained investment in critical infrastructure.

“It is with a deep sense of responsibility and optimism that I join you today to officially launch the third edition of the Lagos Economic Development Update — LEDU 2026.

“This platform has evolved beyond a mere policy document; it has become a compass guiding our economic direction, shaping decisions, and reinforcing our commitment to building a resilient, inclusive, and prosperous Lagos,” he said.

He noted that while the global economic environment has remained unpredictable, Lagos has stayed on course through “clarity, discipline, and foresight,” anchored on the T.H.E.M.E.S+ Agenda.

According to him, the state had strengthened its fiscal framework, improved revenue generation, and invested in infrastructure critical to long-term growth.

Sanwo-Olu further highlighted progress recorded since the inception of LEDU, including the expansion of the state’s economic base driven by innovation, entrepreneurship, and digitalisation; improved efficiency in revenue systems; and sustained infrastructure development spanning roads, ports, energy, and urban planning.

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He added that continued investment in human capital remains central, as “people are the true engine of growth.”

Speaking on the theme of this year’s report, “Consolidating Resilience, Advancing Competitiveness, Delivering Shared Prosperity,” the governor said it reflects Lagos’ current economic priorities.

He explained that consolidating resilience involves strengthening institutions and fiscal discipline, while advancing competitiveness requires boosting productivity, innovation, and investment.

Delivering shared prosperity, he added, means ensuring growth translates into jobs, expanded opportunities, and improved livelihoods for residents.

Looking ahead, he reaffirmed the administration’s commitment to economic diversification, private sector-led growth, data-driven governance, sustainable urban development, and social inclusion.

He also stressed the importance of partnerships with the private sector, development institutions, civil society, and the international community in achieving the state’s development goals.

“As we launch this edition of LEDU, I urge all stakeholders to engage actively, strengthen collaboration, and align with our shared vision.

“We have built resilience; now we must translate it into sustained competitiveness and ensure that growth delivers tangible prosperity for every Lagosian,” he said.

Also speaking, the state Commissioner for Economic Planning and Budget, Ope George, said Lagos has demonstrated remarkable resilience in navigating both global and domestic economic challenges.

“Lagos is not just responding to economic shocks — we are building systems that make us stronger because of them,” he said, noting that deliberate policies, disciplined fiscal management, and strategic investments have reinforced the state’s position as a leading subnational economy in Africa.

He added that the state would continue to prioritise economic diversification, private sector growth, sustainable urban development, and social inclusion, stressing that growth must be measured not only by numbers but also by its impact on people’s lives.

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In his goodwill message, Chief Consultant at B. Adedipe Associates Limited, Biodun Adedipe, described the LEDU initiative as a credible framework for tracking economic performance and refining development strategies.

He noted that Lagos remains central to Nigeria’s economy, adding that its continued growth signals broader national progress.

“If Lagos works, a significant share of Nigeria’s commerce works,” he said, expressing optimism about the state’s economic future.

Meanwhile, the Chief Executive Officer of the Nigerian Economic Summit Group, Tayo Adeloju, urged the state government to prioritise affordable housing as a critical driver of shared prosperity.

He noted that high housing costs could limit upward mobility for low-income earners, stressing that making housing more accessible would enhance living standards and support inclusive growth.

Adeloju added that sustained fiscal discipline, improved service delivery, and a broader productive base would further strengthen Lagos’ position among Africa’s leading megacity economies.

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